6 Helpful Tips for Comparing Credit Cards


Not all credit cards are the same; in fact, most cards are very different. To be able to pick the right credit card for your needs, you need to compare several of them. Here are six helpful tips for comparing credit cards.

Interest rate
If you use your cards a lot and tend to carry a balance, then the interest rate on the card is something you should carefully consider. The higher the interest rate, the more in finance charges you will pay on your balances, so you want to look for a card with a low rate. If you pay your cards off each month, then the interest rate is less of a factor.

Many credit cards offer rewards, which usually are based on how much money you spend. If you are a person who uses credit cards a lot, then you probably would benefit from having a rewards card. When comparing rewards, you want to consider what best fits your lifestyle. If you travel a lot, then a card offering airline miles or hotel credits might be the best bet. Many cards also offer a certain percentage of cash back or discounts at certain retailers. These are all important factors to consider.

Annual fee
Some credit cards charge an annual fee just to have the card. Such cards often offer special perks that outweigh the fee they charge, but it is important to evaluate the perks and compare the total package to other cards that don’t have annual fees.

Other fees
Credit cards tend to have a number of other fees that they charge in certain situations, such as late payment fees, cash advance fees and balance transfer fees. You should weigh these fees when deciding what credit card is right for your needs. If you are looking to do bill consolidation, for example, you might want to get a card that has the lowest balance transfer fees.

Special offers
Cards that tend to offer special offers, such as low-interest deals on balance transfers and purchases, can be a good deal. This is another factor that you should consider and compare between cards when you are considering which one to choose. Cards that offer frequent low-interest promotions could wind up being a better deal than cards with an overall low rate.

Some cards offer special perks to their customers, such as free credit score report, free insurance for travel and purchases or discounted tickets to events. Depending on your spending and lifestyle habits, such as card could be the right choice for you.

Picking the right credit card takes some research. The right card for you will be based on a number of factors, some of which are likely unique to you.